FILED - ace-insurance-litigation.com. 1... · Central District of Califol11ia, Case No.2:...

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 "" i·" ,':1 28 'II, f'" , 1 PILLSBURY WINTHROP SHAW PITTMAN. LLP REYNOLD L. SIEMENS #177956 re nold.siemens illsbur law.com MARIAH BRA DT #224076 mariah. [email protected] 725 South Figueroa Street, Suite 2800 Los Angeles, CA 90017-5406 Telephone: (213) 488-7100 Facsimile No.: (213) 629-1033 Attomeys for Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, FILED Pt:RIOR couII'r !lJ'CALIJORNIA , APR 122012 John Deputy RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP. and RBG HOLDINGS CORP. SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP., Plaintiffs, vs. ) ) ) ) ) ) ) ) ) ) ) ACE AMERICAN INSURANCE ) COMPANY, AMERICAN HOME ) ASSURANCE CO., ARROWOOD ) INDEMNITY COMPANY, ASSOCIATED ) INTERNATIONAL INSURANCE ) COMPANY, CENTURY INDEMNITY ) COMPANY, COLUMBIA CASUALTY ) COMPANY, THE EMPLOYERS' FIRE ) INSURANCE COMPANY, ILLINOIS ) NATIONAL INSURANCE CO., ) INSURANCE COMPANY OF NORTH ) AMERICA, LUMBERMENS MUTUAL ) CASUALTY COMPANY, STEADFAST ) INSURANCE COMPANY, TRANSPORT ) INDEMNITY COMPANY, and DOES 1-50, ) Defendants. ) ) -------------------------) 403425655v2 BC482698 Case No. __________ __ UNLIMITED JURISDICTION COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING JURY TRIAL DEMANDED COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

Transcript of FILED - ace-insurance-litigation.com. 1... · Central District of Califol11ia, Case No.2:...

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• • PILLSBURY WINTHROP SHAW PITTMAN. LLP REYNOLD L. SIEMENS #177956 re nold.siemens illsbur law.com MARIAH BRA DT #224076 mariah. [email protected] 725 South Figueroa Street, Suite 2800 Los Angeles, CA 90017-5406 Telephone: (213) 488-7100 Facsimile No.: (213) 629-1033

Attomeys for Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION,

FILED Pt:RIOR couII'r !lJ'CALIJORNIA

, COUNTVO~LOSANGEUS

APR 122012 John

l'lYI--'::'~~~~~. Deputy

RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP. and RBG HOLDINGS CORP.

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP.,

Plaintiffs,

vs.

) ) ) ) ) ) ) ) ) ) )

ACE AMERICAN INSURANCE ) COMPANY, AMERICAN HOME ) ASSURANCE CO., ARROWOOD ) INDEMNITY COMPANY, ASSOCIATED ) INTERNATIONAL INSURANCE ) COMPANY, CENTURY INDEMNITY ) COMPANY, COLUMBIA CASUALTY ) COMPANY, THE EMPLOYERS' FIRE ) INSURANCE COMPANY, ILLINOIS ) NATIONAL INSURANCE CO., ) INSURANCE COMPANY OF NORTH ) AMERICA, LUMBERMENS MUTUAL ) CASUALTY COMPANY, STEADFAST ) INSURANCE COMPANY, TRANSPORT ) INDEMNITY COMPANY, and DOES 1-50, )

Defendants. ) )

-------------------------)

403425655v2

BC482698 Case No. __________ __

UNLIMITED JURISDICTION

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

JURY TRIAL DEMANDED

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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• • Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION,

RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON­

BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP.

(collectively, "Plaintiffs") allege as follows:

NATURE OF THE ACTION

1. This is a civil action for declaratory relief, breach of contract, and for

breach of the implied covenant of good faith and fair dealing arising from the failure

of certain of the defendant insurers ("Insurers") to satisfy their contractual

obligations to defend and indemnify Plaintiffs against lawsuits filed by present and

fonner professional football players alleging long-term neurological injuries caused

in part by football helmets allegedly designed, developed, assembled, and sold by

Plaintiffs (the "Underlying Actions").

THE PARTIES

2. Easton-Bell Sports, LLC is a Delaware corporation with its principal

place of business in Van Nuys, California.

3. EB Sports Corp. is a Delaware corporation with its principal place of

business in Van Nuys, California, and is wholly owned by Easton-Bell Sports, LLC.

4. RBG Holdings Corp. is a Delaware corporation with its principal place

of business in Van Nuys, California, and is wholly owned by EB Sports Corp.

5. Easton-Bell Sports, Inc. is a Delaware corporation with its principal

place of business in Van Nuys, California, and is wholly owned by RBG Holdings

Corp.

6. Riddell Sports Group, Inc. is a Delaware corporation with its principal

place of business in Texas, and is wholly owned by Easton-Bell Sports, Inc.

7. Riddell, Inc. is an Illinois corporation with its principal place of

business in Chicago, Illinois, and is wholly owned by Riddell Sports Group, Inc.

403425655v2 - 1 -COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE

IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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• • 8. All American Sports Corporation is a Delaware corporation with its

principal place of business in Ohio, and is wholly owned by Riddell Sports Group,

Inc.

9. ACE American Insurance Company ("ACE"), successor to INA

Insurance Company of Illinois ("INA of Illinois"), is a Pennsylvania corporation

with its principal place of business in Philadelphia, Pennsylvania, and is currently

authorized to and is currently doing business in the state of California.

10. American Home Assurance Co. ("American Home") is a New York

corporation with its principal place of business in New York, New York, and is

authorized to and is currently doing business in the state of California.

I I. Arrowood Indemnity Company ("Arrowood"), formerly known as

Royal Indemnity Company ("Royal Indemnity"), successor in interest to Globe

Indemnity Company ("Globe"), is a Delaware corporation with its principal place of

business in Charlotte, North Carolina, and is authorized to and is currently doing

business in the state of California.

12. Associated International Insurance Company ("Associated") is a

California corporation with its principal place of business in Deerfield, Illinois, and

is authorized to and is currently doing business in the state of California. \

13. Century Indemnity Company ("Century"), successor to Insurance

Company of North American ("INA"), is a Pennsylvania corporation with its

principal place of business in Los Angeles, California, and is authorized to and is

currently doing business in the state of California.

14. Columbia Casualty Company ("Columbia") is an Illinois corporation

with its principal place of business in Chicago, Illinois, and is currently doing

business in the state of California.

IS. The Employers' Fire Insurance Company ("Employers' Fire") is a

Massachusetts corporation with its principal place of business in Canton,

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IMPLIED COVENANT Of GOOD FAITH AND FAIR DEALING

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• • Massachusetts, and is authorized to and is currently doing business in the state of

California.

16. Illinois National Insurance Co. ("Illinois National") is an Illinois

corporation with its principal place of business in Chicago, Illinois, and is currently

doing business in the state of California.

17. Insurance Company of North America ("INA") is a Pennsylvania

corporation with its principal place of business in Philadelphia, Pennsylvania.

18. Lumbermens Mutual Casualty Company ("Lumbermens") is an

Illinois corporation with its principal place of business in Lake Zurich, Illinois, and

is authorized to and is currently doing business in the state of California.

19. Steadfast Insurance Company ("Steadfast") is a Delaware corporation

with its principal place of business in Schaumburg, Illinois, and is authorized to and

is currently doing business in the state of California.

20. Transport Insurance Company ("Transport"), fonnerly known as

Transport Indemnity Company ("Transport Indemnity"), is an Ohio corporation with

its principal place of business in Boston, Massachusetts, and is authorized to and is

currently doing business in the state of California.

21. The true names and capacities of the defendants sued herein as Does I-

SO, inclusive, are unknown to Plaintiffs, which therefore sued said defendants by

such fictitious names. Plaintiffs will amend this Complaint to allege their true

names and capacities when ascertained. Plaintiffs are informed and believe and

thereon allege that each of said fictitiously named defendants is in some manner

responsible, in whole or in part, for the matters alleged herein.

THE UNDERLYING ACTIONS

22. At present, the Underlying Actions consist of seven lawsuits filed

against Plaintiffs. Each lawsuit alleges that head injuries experienced by

professional football players while playing in the National Football League ("NFL")

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IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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• • were caused in part by Plaintiffs' alleged negligence, and/or alleged defects relating

to helmets made by Plaintiffs. The seven Underlying Actions against Riddell are

summarized below:

23, On or about July 19,2011, a lawsuit entitled Maxwell, etal. v.

National Football League, et at. was filed in the United States District Court for the

Central District of Califol11ia, Case No.2: II-cv-08394 ("Maxwell"). Maxwell has

been transferred and consolidated with the other actions in the NFL Players'

Concussion Injury Litigation MDL No, 2323 in the United States District Court for

the Eastel11 District of Pennsylvania ("MDL'').

24. On or about July 19, 20 II, a lawsuit entitled Pear, et at. v. National

Football League, et al. was filed in the United States District Court for the Central

District ofCalifol11ia, Case No.2: II-cv-08395 ("Pear"). Pear has been transferred

and consolidated in the MDL.

25. On or about August 26, 20 II, a lawsuit entitled Barnes, et at. v.

National Football League, et al. was filed in the United States District Court for the

Central District of Califol11ia, Case No.2: II-cv-08396 ("Barnes"). Barnes has been

transferred and consolidated in the MD L.

26. On or about October 13,2011, a lawsuit entitled Hardman, et al. v.

National Football, et al. was filed in the Superior Court of the State ofCalifol11ia

County of Los Angeles, Case No. BC471229 ("Hardman"). Hardman was

dismissed without prejudice on December 7, 20 II.

27. On or about January 19,2012, a lawsuit entitled Joel Steed v. National

Football League, et al. was filed in the United States District Court for the Central

District of Califol11ia, Case No.2: 12-cv-00524 ("Steed"). Steed has been transferred

and consolidated in the MDL.

403425655v2 - 4 -COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE

IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

• • 28. On or about January 23, 2012, a lawsuit entitled Steve Wallace, et al.

2 v. National Football League, et al. was filed in the United States District Court for

3 the Eastern District of Pennsylvania, Case No.2: 12-cv-00336 (" Wallace"),

4 29. On or about February 17,2012, a lawsuit entitled Tyrone Hughes, et

5 al. v. National Football League, et al. was filed in the United States District Court

6 for the Eastern District of Louisiana, Case No.2: 12-cv-00459 ("Hughes"). Hughes

7 has been transferred and consolidated in the MDL.

8 30. Plaintiffs have incurred and/or continue to incur losses in defending

9 themselves against the foregoing Underlying Actions.

10 31. Plaintiffs gave prompt notice to the Insurers of the Underlying

11 Actions.

12 PLAINTIFFS' INSURANCE COVERAGE

13 32. Plaintiffs had in full force and effect primary policies that provide

14 commercial general liability and products liability coverage (the "Primary Policies")

15 and/or excess policies that provide commercial general liability and products

16 liability coverage (the "Excess Policies," collectively, the "Policies") issued by each

17 of the Insurers.

18 33. The Primary Policies include the following policies issued by certain

19 Insurers and/or their predecessors:

20 Insurer Policy No. Policy Period

21 Lumbennens Unknown 12/31/1959 12/31/1960

22 LUlllberlllens OYL-211500 12/31/1960 12/31/1961 LUlllbennens I YL-211500 12/31/1961 12/31/1962

23 Arrowood flk/a Royal GLG-473526 12/31/1964 3/31/1965

24 Indemnity, successor in interest to Globe

25 Arrowood flk/a Royal GYB 145617 3/31/1965 3/31/1968 Indemnity, successor in

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INA AGP 102151,10-68-25 3/30/1971 10/31/1971 INA AGP 12-36-88 59 10/31/1971 11/5/1975

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IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

• • Columbia CCPI866338 11/5/1975 11/5/1976

2 Employers' Fire F22-40040-21 3/31/1968 3/31/1971 Associated XS 100160 3/15/1977 4/22/1977

3 Associated AEL 050330 4/22/1977 4/22/1978 Associated XS 100160 4/22/1977 8/10/1977

4 Associated XS 100160 8/10/1977 4/22/1978

5 Associated XS 100160 8/10/1977 4/22/1978 Associated AEL 050330 4/22/1978 4/2211979

6 Associated XS 100160 4/22/1978 4/2211979

7 Associated XS 100160 4/22/1978 4/22/1979 Associated AUL 301286 4/22/1979 4/22/1980

8 Associated AUL 301456 4/2211980 4/22/1981

9 Associated GL 101494 4/2211982 8119/1982 Associated PR 102355 8/1911982 4/22/1983

10 Associated PR 103062 4/22/1983 4/22/1984

11 Associated PR 106742 4/22/1984 4/22/1985 Associated XS 106787 4/22/1984 4/22/1985

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13 34. The Excess Policies include the following policies issued by certain

14 Insurers and/or their predecessors:

15 Insurer Policy No. Policy Period

16 Arrowood f/kJa Royal GLA-100207 3/31/1965 3/31/1968

17 Indemnity, successor in interest to Globe

18 American Home 35-15-48 3/31/1968 - 12/22/1969 American Home 35-15-48 12/23/1969 - 3/3111971

19 American Home CE 35-15-48 3/31/1971 - 10/31/1971

20 American Home BE 267-71-55 10/31/1971 - 10/31/1974 Columbia RDX4169594 42 4/22/1979 4/2211980

21 Transport TUL 675407 4/22/1982 8/19/1982

22 Transport TUL 675426 8/19/1982 4/22/1983 Transport TUL 675434 4/22/1983 4/22/1984

23 Transport TUL 675458 4/22/1984 4/22/1985

24 lllinois National BE 357-02-65 1/31/1998 113112009 Steadfast sca 9672420-00 8/1/2008 1131120 I 0

25 Steadfast sca 9672420-01 1/31/2010 7/31/2011

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35. The losses incurred by Plaintiffs in connection with the Underlying "1 ,,, 11:1 28 .\ ,. I"

Actions fall or potentially fall within the scope of coverage of these Policies.

403425655v2 - 6 -COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE

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• • Accordingly, pursuant to the ten11S of the Policies and under the law, Insurers have

2 the duty to defend and/or indemnify Plaintiffs for losses incurred in connection with

3 the Underlying Actions, subject to each policy's terms, indemnity limit, deductible,

4 or attachment point.

5 36. To date, Arrowood, Employers' Fire, and ACE/Century/INA have

6 agreed to defend Riddell against the Underlying Actions, and Steadfast has agreed to

7 defend upon exhaustion of its self-insured retention, subject to a reservation of

8 rights. Other Insurers that have a duty to defend have refused to honor their defense

9 obligations. The Insurers have not agreed to indemnify plaintiffs against the

10 Underlying Actions.

II 37. As to the Policies, Plaintiffs have paid the required premiums in full

12 and have satisfied all other conditions to coverage, or are otherwise excused from

13 doing so. All actions taken by Plaintiffs with respect to the above loss have been

14 reasonable, and no action has prejudiced the ability of the Insurers to fulfill their

15 contractual obligations.

16 FIRST CAUSE OF ACTION

17 (For Declaratory Relief as to Duty to Defend)

18 (Against Lumbermens, American Home, and Columbia)

19 38. Plaintiffs repeat and incorporate by reference the allegations of

20 paragraphs I through 37above.

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39. Pursuant to the tenns of certain of the Lumbermens, American Home

and Columbia Policies, these Insurers are obligated to defend Plaintiffs against the

Underlying Actions.

40. These Insurers have failed to defend Plaintiffs against the Underlying

Actions.

4 I. An actual controversy of a justiciable nature presently exists between

Plaintiffs and these Insurers concerning the proper construction of the Policies and

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• • the rights and obligations of the parties. The controversy is of sufficient immediacy

2 to justify the issuance of a declaratory judgment.

3 WHEREFORE, Plaintiffs pray for relief as set forth below.

4 SECOND CAUSE OF ACTION

5 (For Declaratory Relief as to Duty to Indemnify)

6 (Against All Defendants)

7 42. Plaintiffs repeat and incorporate by reference the allegations of

8 paragraphs I through 41 above.

9 43. Pursuant to the tenns of the Policies, the Insurers are obligated to

10 indemnify the Plaintiffs covered by their Policies for the entire amount of losses

11 incurred in connection with the Underlying Actions, subject to the Policies' limits,

12 deductibles, or attachment points.

13 44. None of the Insurers have agreed to indemnify or provide a defense for

14 any of the Underlying Actions.

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45. An actual controversy of a justiciable nature presently exists between

Plaintiffs and Insurers concerning the proper construction of the Policies and the

rights and obligations of the parties with respect to losses incurred by Plaintiffs in

connection with the Underlying Actions. The controversy is of sufficient immediacy

to justify the issuance of a declaratory judgment.

46. WHEREFORE, Plaintiffs pray for relief as set forth below.

THIRD CAUSE OF ACTION

(For Breach of Contract)

(Against Lumbermens, American Home, and Columbia)

47. Plainti ffs repeat and incorporate by reference the allegations of

paragraphs I through 46 above.

48. Pursuant to the terms of certain of the Lumbennens, American Home

and Columbia Policies, these Insurers are obligated to defend Plaintiffs against the

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• • Underlying Actions.

2 49. These Insurers have failed to defend Plaintiffs against the Underlying

3 Actions.

4 50. Lumbennens, American Home and Columbia have breached the terms

5 of their Policies by refusing to perform their duty to defend Plaintiffs against the

6 Underlying Actions.

7 51. As a direct result of these Insurers' breach of their Policies, Plaintiffs

8 have been deprived of the benefits of insurance coverage, for which it paid

9 substantial premiums, with respect to losses incurred by Plaintiffs in connection with

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52. WHEREFORE, Plaintiffs pray for relief as set forth below.

FOURTH CAUSE OF ACTION

(For Breach of the Implied Covenant of Good Faith and Fair Dealing)

(Against American Home and Lumbermens)

53. Plaintiffs repeat and incorporate by reference the allegations of

paragraphs I through 52 above.

54. Implied in each of the Insurers' Policies is a covenant that they will act

in good faith and deal fairly with their insureds; that they will do nothing to interfere

with their insured's rights to receive the benefits of the Policies; that they will not

place their own interests before those of their insureds; that they will exercise

diligence, good faith, and fidelity in safeguarding the interests of their insureds; that

they will deal ethically with their insureds and will fairly and adequately infonn

them of the nature and scope of their insurance coverage (hereinafter referred to as

"the implied covenant of good faith and fair dealing").

55. American Home and Lumbennens have each breached the implied

covenant of good faith and fair dealing by, inter alia:

a. Refusing fully to defend and/or indemnify Riddell for covered

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• • liabilities, as defined in their Policies, without regard to relevant

insurance policy language, relevant law, and the specific facts

of the claim;

b, Interpreting the terms and conditions of their Policies in an

unreasonable manner, which is wholly inconsistent with

applicable law, solely in an effort to avoid providing Riddell

with coverage to which it is entitled under the Policies;

c, Refusing to acknowledge coverage, or withdraw or alter their

denials of coverage, notwithstanding their inability to identify

supporting legal or factual authority for their coverage defenses,

and decisions of other Courts rejecting their legal and/or factual

contentions;

d, Inventing spurious grounds for avoidance of coverage without

regard to the pertinent policy language, facts, or law;

e. Failing to provide promptly a reasonable explanation of the

basis relied on, in relation to the facts or applicable law, for the

denial of coverage;

f. Not attempting in good faith to negotiate a prompt, fair, and

reasonable settlement within policy limits of Riddell's claims;

g, Failing to provide Riddell with copies of documents evidencing

the terms of coverage when requested;

h. Forcing Riddell to file this litigation in order to obtain the rights

and benefits to which it is entitled under their Policies,

56, Plaintiffs are infonned and believe and thereon alleges, that American

Home and Lumbermens are in breach of the implied covenant of good faith and fair

dealing, did the things and committed the wrongful acts alleged above, among other

things, for the purpose of willfully and consciously withholding from Plaintiffs the

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• • rights and benefits to which they are entitled under their Policies and in complete

2 disregard of said rights; in so doing, American Home and Lumbermens have placed

3 their own interests above those of Plaintiffs for the purpose of retaining and using

4 money that should have been spent on the defense of RiddelL

5 57. Pursuant to Brandt v. Superior Court, 37 CaL 3d 813 (1983), Plaintiffs

6 are entitled to recover all attorneys' fees and expenses that they reasonably have

7 incurred and will incur, in their efforts to obtain the benefits of insurance that have

8 been, and continue to be, wrongfully and in bad faith withheld by American Home

9 and Lumbennens.

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58. The wrongful conduct alleged herein was done with conscious

disregard of Plaintiffs' rights and with the intent to vex, injure or annoy Plaintiffs,

such as to constitute oppression, fraud or malice under California Civil Code Section

3294, thereby entitling Plaintiffs to punitive damages in an amount appropriate to

punish or set an example of Lumbermens and American Home.

WHEREFORE, Plaintiffs pray for relief as set forth below:

PRAYER FOR RELIEF

Plaintiffs request that the Court enter judgment as follows:

59. On the First Cause of Action, for a declaration that the Lumbemens,

American Home and Columbia policies impose on those Insurers a duty to defend

Riddell against the Underlying Actions, as more fully described above;

60. On the Second Cause of Action, for a declaration that the Insurers have

a duty to indemnify the Plaintiffs insured under their Policies against the Underlying

Actions.

61. On the Third and Fourth Causes of Action:

a. Compensatory and general damages according to proof;

b. Special and incidental damages according to proof;

c. Prejudgment interest at the maximum legal rate;

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• • 62, For costs of suit; and

63, For such other and further relief as the Court deems appropriate,

Dated: April 12,2012.

403425655v2

PILLSBURY WINTHROP SHAW PITTMAN LLP REYNOLD L SIEMENS 725 South Figueroa Street, Suite 2800 Los Angeles, CA 90017-5406

By (<i <2 v ~ld L 'Siemens

Attorneys for Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTON­BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP.

- 12 -COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE

IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

REYNOLD L. SIEMENS # I 77956IMARIAH BRANDT #224076 725 S. Figueroa Street, Suite 2800, Los Angeles, CA 90017-5406

TELEPHONE NO.: 7100 FAX NO.: 629-1033 All American S

COURT OF CALIFORNIA, COUNTY OF LOS ANGELES STREET ADDRESS III N, Hill Street MAILING ADDRESS:

CITY AND ZIP CODE: t\"l~eIC", CA 90012 Courthouse

INC. et al. v. ACE AMERICAN

. et al.

ct al. CIVIL CASE COVER SHEET

[2] Unlimited D Limited (Amount (Amount

Complex Case Designation

D Counter D Joinder

demanded demanded is exceeds $25,000 or

Filed with first appearance by defendant I Rules of Court, rule

JUDGE:

DEPT:

Items 1-6 below must be completed (see instructions on page 2)

1. Check one box below for the case type that best describes this case: Auto Tort

D Auto(22) D Uninsured motorist (46)

Other Pt/PD/WD (Personallnjury/Property DamagefWrongful Death) Tort

o Asbestos (04)

o Product liability (24)

D D

Medical malpractice (45)

Other PtlPD/WD (23) Non~PIIPDIWD (Other) Tort

o Business tort/unfair business practice (07)

D Civil rights (08)

D Defamation (13)

D Fraud (16)

o Intellectual property (19)

Contract

D Breach of contracUwarranty (06)

D Rule 3.740 collections (09)

D Other collections (09)

D Insurance coverage (18)

D Other contract (37)

Real Property

D Eminent domain/Inverse condemnation (14)

D Wrongful eviction (33)

D Other real property (26)

Unlawful Detainer

D Commercial (31)

D Residential (32)

D Drugs (38)

D Professional negligence (25) Judicial Review

D Other non-PI/PDIWD tort (35) D Asset forfeiture (OS)

Employment D Petition re: arbitration award (11)

D Wrongful termination (36) D Writ of mandate (02)

D Other employment (15) D Other judicial review (39)

Provisionally Complex Civil Litigation (Cal. Rules of Court, rules 3.400-3.403)

D D D

AntitrustfTrade regulation (03)

Construction defect (10)

Mass tort (40)

o Securities litigation (28) o EnvironmentalfToxic tort (30)

[LJ Insurance coverage claims arising from the above listed provisionally complex case types (41)

Enforcement of Judgment

D Enforcement of judgment (20)

Miscellaneous Civil Complaint

D RICO(27)

o Other complaint (not specified above) (42)

Miscellaneous Civil Petition

D Partnership and corporate governance (21)

D Other petition (not specified above) (43)

This case LLJ is LJ is not complex under rule 3.400 of the California Rules of Court. If the case is complex, mark the factors requiring exceptional judicial management:

a. CZJ Large number of separately represented parties d. 0 Large number of witnesses

b. [ZJ Extensive motion practice raiSing difficult or novel

issues that will be time~consuming to resolve

c. D Substantial amount of documentary evidence

e. [{] Coordination with related actions pending in one or more courts

in other counties, states, or countries, or in a federal court

f. D Substantial post judgment judicial supervision

3. Remedies sought (check all that apply): a.W monetary b. W nonmonetary; declaratory or injunctive relief c. [Z] punitive

4. Number of causes of action (specify): Four (4) 5. This case 0 is [ZJ is not a class action suit. 6. If there are any known related cases, file and serve a notice of related case. (You may use form CM-01S.)

Date: April 12, 2012 1) / ~ Reynold L. Siemens ~ i<--i II~/-+--

'---~~~tso.l~'~~~~~FREoO~F~P"A~R~TY"O~ROA~n~o~RN~E~Y~F~O~R~PA~R~IT~I---------(TYPE OR PRINT NAME)

NOTICE • Plaintiff must file this cover sheet with the first paper filed in the action or proceeding (except small claims cases or cases filed

under the Probate Code, Family Code, or Welfare and Institutions Code). (Cal. Rules of Court, rule 3.220.) Failure to file may result in sanctions .

• File this cover sheet in addition to any cover sheet required by local court rule. :~. If this case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all ;~ other parties to the action or proceeding. !r~. Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes onlv. 'I,. .sago 1 01 2

~9rrn Adopted for Mandatory Uso CIVIL CASE COVER SHEET Cal. RUles of Court, rules 2.30. 3.220, 3.400--3.403, 3.740, JudiCial CounCil of Cnllforrlla Cal. Standards of Judicial Administration, std. 3,10 CM.QlO [Rev. July I, 2007] www.courtinfo.ca.gov

Amorican LogalNot, Inc. WWW.FormsWorkflow.com

• • SHORT TITLE: CASE NUMBER

RIDDELL, INC. vs. ACE AMERICAN INSURANCE COMPANY, et al.

CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION

(CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION)

This form is required pursuant to Local Rule 2.0 in all new civil case filings in the Los Angeles Superior Court.

Item I. Check the types of hearing and fill in the estimated length of hearing expected for this case:

JURY TRIAL? IRl YES CLASS ACTION? DYES LIMITED CASE? DYES TIME ESTIMATED FOR TRIAL 15 0 HOURS/[;J DAYS

Item II. Indicate the correct district and courthouse location (4 steps - If you checked "Limited Case", skip to Item III, Pg. 4):

Step 1: After first completing the Civil Case Cover Sheet form, find the main Civil Case Cover Sheet heading for your

case in the left margin below, and, to the right in Column A. the Civil Case Cover Sheet case type you selected.

Step 2: Check Q!!.!'. Superior Court type of action in Column B below which best describes the nature of this case.

Step 3: In Column C, circle the reason for the court location choice that applies to the type of action you have checked. For any exception to the court location, see Local Rule 2.0.

Applicable Reasons for Choosing Courthouse Location (see Column C below)

1. Class actions musl be filed in the Stanley Mask Courthouse, central district. 2. May be filed in central (other county, or no bodily injury/properly damage).

6. Location of property or permanenlly garaged vehicle. 7. Location where pelltioner resides.

3. Location where cause of action arose. 8. Location wherein defendanUrespondent functions wholly. 4. Location where bodily injury, death or damage occurred. 5. Location where performance required or defendant resides.

9. Location where one or more of the parties reside. 10. Location of Labor Commissioner Office

Step 4: Fill in the information requested on page 4 in Item III; complete Item IV. Sign the declaration.

21:: " 0 <I-

A Civil Case Cover Sheet

Category No.

Auto (22)

Uninsured Motorist (46)

Asbestos (04)

Product Liability (24)

Medical Malpractice (45)

Other Personal Injury

Property Damage Wrongful Death

(23)

~~CIV 109 (Rev. 03/11)

LASC Approved 03-04

B C Type of Action Applicable Reasons -

(Check only one) See Step 3 Above

0 A7100 Motor Vehicle - Personal Injury/Property Damage/Wrongful Death 1 .. 2.,4.

0 A7110 Personal Injury/Property DamagelWrongful Death - Uninsured Motorist 1.,2 .. 4.

0 A6070 Asbestos Property Damage 2.

0 A7221 Asbestos - PersonallnjurylWrongful Death 2.

0 A7260 Product Liability (not asbestos or toxic/environmental) 1 .. 2., 3., 4 .. 8.

0 A7210 Medical Malpractice - Physicians & Surgeons 1 .. 4.

0 A7240 Other Professional Health Care Malpractice 1 .. 4.

0 A7250 Premises Liability (e.g., slip and fall) 1.,4.

0 A7230 Intentional Bodily Injury/Property DamagelWrongful Death (e.g., 1 .. 4. assault, vandalism, etc.)

0 A7270 Intentional Infliction of Emotional Distress 1 .. 3.

0 A7220 Other Personal Injury/Property Damage/Wrongful Death 1.,4.

CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION

Local Rule 2.0

,-------.:;c-, Page 1 of 4 ,\111frlclln I.CI:~I~d, Inc. ~ \\W\I..FunnsWOllFlow.cnm ~

• • I SHORT TITLE,

RIDDELL, INC., et al. vs. ACE AMERICAN INSURANCE, et al. I CASE NUMBER

A Civil Case Cover Sheet

Category No.

Business Tort (07)

>--e -e 0 "'>- Civil Rights (08) D.", eta

0.. '" -0 ~-

Defamation (13)

" " '--.!; C> 0: Fraud (16)

C; e 5;: <n-~ '" '" C> Professional Negligence (25) "- '" C E 0'" zo

Other (35)

C Wrongful Termination (36)

'" E >-0 Q. E Other Employment (15) w

Breach of ContracV Warranty (06)

(not insurance)

-u g 0: Collections (09) 0 (J

Insurance Coverage (18)

Other Contract (37)

Eminent Domainllnverse Condemnation (14)

>--e '" Wrongful Eviction (33) D. 0 ~

0..

"iii '" '" Other Real Property (26)

Unlawful Detainer-Commercial ~ (31) '" 0: 'iii Unlawful Detainer-Residential 0;

(32) 0 -;; 'i Unlawful Detainer-

'" Post-Foreclosure (34)

" ::>

!P. Unlawful Detainer-Drugs (38)

'1\ ., .,

t:ACIV 109 (Rev. 03/11)

." LASC Approved 03-04

B C Type of Action Applicable Reasons -

',,- (Check only one) See Step 3 Above

0 A6029 Other Commercial/Business Tort (not fraud/breach of contract) 1., 3.

0 A6005 Civil Rights/Discrimination 1 .. 2 .. 3.

0 A6010 Defamation (slander/libel) 1.,2.,3.

0 A6013 Fraud (no contract) 1.,2" 3.

O A6017 Legal Malpractice 1 .. 2., 3.

0 A6050 Other Professional Malpractice (not medical or legal) 1.,2 .. 3.

0 A6025 Other Non-Personallnjury/Property Damage tort 2 .. 3.

0 A6037 Wrongful Termination 1 .. 2 .. 3.

0 A6024 Other Employment Complaint Case 1 .. 2., 3.

0 A6109 Labor Commissioner Appeals 10.

0 A6004 Breach of Rental/Lease Contract (not unlawful detainer or wrongful 2 .. 5. eviction)

0 A6008 ContracVWarranty Breach -Seller Plaintiff (no fraud/negligence) 2 .. 5.

0 A6019 Negligent Breach of ContracVWarranty (no fraud) 1 .. 2" 5.

0 A6028 Other Breach of ConlracVWarranty (not fraud or negligence) 1 .. 2 .. 5.

0 A6002 Collections Case-Seller Plaintiff 2 .. 5 .. 6.

0 A6012 Other Promissory Note/Collections Case 2,5.

0 A6015 Insurance Coverage (not complex) 1.,2.,5 .. 8.

0 A6009 Contractual Fraud 1 .. 2., 3 .. 5.

0 A6031 Tortious Interference 1 .. 2., 3., 5.

0 A6027 Other Contract Dispule(not breach/insurance/fraud/negligence) 1.,2.,3.,8.

0 A7300 Eminent Domain/Condemnation Number of parcels ___ 2.

0 A6023 Wrongful Eviction Case 2.,6.

0 A6018 Mortgage Foreclosure 2.,6.

0 A6032 Quiet Title 2.,6.

0 A6060 Other Real Property (not eminent domain, landlordltenant, foreclosure) 2.,6.

0 A6021 Unlawful Detainer-Commercial (not drugs or wrongful eviction) 2 .. 6.

0 A6020 Unlawful Detainer-Residential (not drugs or wrongful eviction) 2 .. 6.

0 A6020F Unlawful Detainer-Past-Foreclosure 2 .. 6.

0 A6022 Unlawful Detainer-Drugs 2.,6.

CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.0

Page 2 of 4 AND STATEMENT OF LOCATION ,-----__=>

@ Alnl'rican Le\:ul/';e!, IIIC, "WW F'nml,WorkFluw.mm

• • I

SHORT TITLE

RIDDELL, INC., et al. VS. ACE AMERICAN INSURANCE, et al. I CASE NUMBER

'A Civil Case Cover Sheet

Category No.

Asset Forteiture (05)

Petition re Arbitration (11)

Writ of Mandate (02)

Other Judicial Review (39)

0

0

0

0

0

0

B

:. ~ ~ .<

Type of Action (Check only one) .

A6108 Asset Forfeiture Case

A6115 Petition to Compel/ConfirmNacate Arbitration

A6151 Writ - Administrative Mandamus

A6152 Writ - Mandamus on Limited Court Case Matter

A6153 Writ - Other Limited Court Case Review

A6150 Other Writ IJudicial Review

C Applicable Reasons -

See Step 3 Above

2.,6.

2.,5.

2.,8.

2.

2.

2.,8.

AntitrustITrade Regulation (03) 0 A6003 AnlitrustfTrade Regulation 1 .. 2 .. 8.

c -" ., ., E E .,

'" " 'C ~

" .E ..., " -w 0

"' "' " " 0 ~ .,

" ~ .!!! Q; 0.

" :~ "' :E u

Construction Defect (10)

Claims Involving Mass Tort (40)

Securities Litigation (28)

Toxic Tort Environmental (30)

Insurance Coverage Claims from Complex Case (41)

Enforcement of Judgmenl (20)

RICO (27)

Other Complaints (Not Specified Above) (42)

Partnership Corporation Governance (21)

Other Petitions (Not Specified Above)

(43)

~ACIV 109 (Rev. 03/11) tl,l

LASC Approved 03-04

0 A6007

0 A6006

0 A6035

0 A6036

XlI A6014

0 A6141

0 A6160

0 A6107

0 A6140

0 A6114

0 A6112

0 A6033

0 A6030

0 A6040

0 A6011

0 A6000

0 A6113

0 A6121

0 A6123

0 A6124

0 A6190

0 A6110

0 A6170

0 A6100

Construction Defect

Claims Involving Mass Tort

Securities litigation Case

Toxic TorVEnvironmental

Insurance Coverage/Subrogation (complex case only)

Sister State Judgment

Abstract of Judgment

Confession of Judgment (non-domestic relations)

Administrative Agency Award (not unpaid taxes)

Petition/Certificate for Entry of Judgment on Unpaid Tax

Other Enforcement of Judgment Case

Racketeering (RICO) Case

Declaratory Relief Only

Injunctive Relief Only (not domestic/harassment)

Other Commercial Complaint Case (non-torVnon-complex)

Other Civil Complaint (non-torUnon-complex)

Partnership and Corporate Governance Case

Civil Harassment

Workplace Harassment

Elder/Dependent Adult Abuse Case

Election Contest

Petition for Change of Name

Petition for Relief from Late Claim Law

Other Civil Petition

1 .. 2 .. 3.

1 .. 2 .. 8.

1 .. 2 .. 8.

1.,2.,3.,8.

1 .. 20 8.

2.,9.

2 .. 6.

2.,9.

2.,8.

2.,8.

2 .. 8 .. 9.

1 .. 2 .. 8.

1 .. 2., 8.

2.,8.

1 .. 2 .. 8.

1.,2.,8.

2 .. 8.

2.,3.,9.

2.,3.,9.

2 .. 3., 9 .

2.

2.,7.

2 .. 3., 4., 8.

2.,9.

CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION

Local Rule 2.0

I ,A",m"'''~;'l!!'"~'",''","'~''",'''~' '~"'",' ':'::..'1ni.>.'lii':.~1 Page 3 of 4 ...... wwll·.Fnnll'\VofkFlow COlli f::I:I.Q

• • SHORT TITLE: CASE NUMBER

RIDDELL, INC., et al. vs. ACE AMERICAN INSURANCE, et al.

Item III. Statement of Location: Enter the address of the accident, party's residence or place of business, performance, or other

circumstance indicated in Item II., Step 3 on Page 1, as the proper reason for filing in the court location you selected.

ADDRESS:

REASON: Check the appropriate boxes for the numbers shown 818 W. Seventh Street under Column C for the type of action that you have selected for

Los Angeles, CA 90017 this case.

Or. 02. 03. 04. r;]5. 06. 07. 08. 09.010.

CITY: STATE: ZIP CODE:

Los Angeles CA 90017

Item IV. Declaration of Assignment: I declare under penalty of perjury under the laws of the State of California that the foregoing is true

and correct and that the above-entitled matter is properly filed for assignment to the Stanley Mask courthouse in the

_C_e_n_tr_a_I _____ District of the Superior Court of California, County of Los Angeles [Code Civ. Proc., § 392 et seq., and Local

Rule 20, subds. (b), (c) and (d)l.

Dated: April 12, 2012

(SIGNA URE OF ATTORNEY/FILING PARTY)

Reynold l. Siemens

PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDER TO PROPERLY COMMENCE YOUR NEW COURT CASE:

,

1. Original Complaint or Petition.

2. If filing a Complaint, a completed Summons form for issuance by the Clerk.

3. Civil Case Cover Sheet, Judicial Council form CM-010.

4. Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev. 03/11).

5. Payment in full of the filing fee, unless fees have been waived.

6. A signed order appointing the Guardian ad Litem, Judicial Council form CIV-010, if the plaintiff or petitioner is a minor under 18 years of age will be required by Court in order to issue a summons.

7. Additional copies of documents to be conformed by the Clerk. Copies of the cover sheet and this addendum must be served along with the summons and complaint, or other initiating pleading in the case.

\?CIV 109 (Rev. 03111) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.0

LASe Approved 03-04